When it comes to investing your money, Fixed Deposits (FDs) are a popular choice among Indians. As a matter of fact, 95% of Indian households have parked their savings in bank deposits. FDs offer security, stability, and guaranteed returns. However, once your FD reaches maturity, you have to decide whether to renew it or withdraw your funds.

What Happens When Your Fixed Deposit Reaches Maturity?:

When you open an FD, you have to select a tenure. Generally, FD tenure (for callable FDs with no lock-in period) ranges from 7 days to 10 years. The term “Fixed Deposit maturity" refers to the completion of the fixed deposit tenure. When an FD matures, you have two options: renewal or withdrawal.
 

Let's understand the different FD renewal processes first.

Withdrawal Options Before and After FD Maturity:

Apart from renewal, you also have the option to withdraw your FD investment. Let's explore the two types of withdrawals: after maturity and premature withdrawal.

It is crucial to recognise that penalty fees for early withdrawal can vary significantly between financial institutions. These charges may range from 0% to 1%, depending on each bank’s regulations. 

Therefore, before opting for an early withdrawal, it is essential to carefully examine the fixed deposit's terms and conditions to fully understand any potential fees that may apply.

Point to Note: Ujjivan SFB doesn't levy any premature withdrawal penalty withdrawals made after 6 months from the time of deposit.

How to Withdraw Your Funds Before FD Maturity?

To withdraw your money before fixed deposit maturity, you can do it either online or offline. For online withdrawals, follow these steps:

• Log in to the bank's website using your internet banking login credentials.
• On the account homepage, find the "Fixed Deposit" section and select "Close FD account prematurely".
• Choose the specific FD scheme you wish to close.
• Ensure that you confirm all pertinent information and supply the required credentials to validate the transaction.
• The funds will be credited to your linked savings or current account.

For offline withdrawals, you need to visit the bank branch and fill out a fixed deposit closure form. Then you need to surrender your Fixed Deposit Receipt (FDR) along with any other necessary documents as per the bank's requirements.

Pro Tip: Avoid withdrawing your FD before maturity date. You may lose out on higher returns. Use an online Fixed Deposit ROI Calculator to compare returns.

Disclaimer: Please note that this is a generic overview of FD premature withdrawal process. If you have FD investment with Ujjivan SFB and want to close your account, kindly contact the band to understand the process.